Goodyear will provide high compensation to their workers affected by the decision to close its factory in Shah Alam.

A transition process involving employee welfare was implemented prior to the announcement. This process includes collaboration with several companies such as Proton Holdings Bhd. to provide employment opportunities to affected workers.

This news was revealed by the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. He said Goodyear took those steps to ensure a smooth transition process for employees. In addition, Goodyear will provide higher compensation than is stipulated under the provisions of the law.

“This factory is closing because Goodyear aims to reduce costs up to US$1 billion a year by 2025. The closure of the factory in Shah Alam is part of the said cost reduction measures.

“Goodyear will also close two of its tire factories in Germany, involving 1,750 workers. A tire factory in the United Kingdom will also be closed. So, not only operations in Malaysia, but Goodyear’s operations around the world will also be affected,” he said in a post on social media on Friday.

Goodyear will reportedly close its factory in Shah Alam, Selangor after 50 years of operation, affecting approximately 550 employees.

He said, MITI and its agency MIDA have mobilized a special team involving SOCSO and the Department of Manpower through the Invest Malaysia Facilitation Center to facilitate job placement, as well as offer skill improvement and reskilling programs.

“Most importantly, all those efforts have been implemented before the announcement of the factory closure was made to ensure that the transition process for the workers goes smoothly,” he said.

Commenting further, Tengku Zafrul said that the government will ensure that Malaysia continues to receive investment that can help the country’s economy.

That is the main challenge at the moment given the current global economic landscape in ensuring that there is more inward investment than outward investment as is the case with Goodyear.

He said investment announcements of RM329.5 billion were approved last year, the highest in Malaysia’s history. A total of 5,310 projects have been approved and will generate nearly 130,000 job opportunities.

“In the manufacturing sector alone, 63 percent of the approved investments were from existing businesses expanding their operations.